Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Effect of Service Quality, Satisfaction and Loyalty toward Customer Retention in the Telecommunication Industry

Voon Sze Chee, Maizaitulaidawati Md Husin

http://dx.doi.org/10.6007/IJARBSS/v10-i9/7496

Open access

Telecommunication industry becomes more competitive, and mobile service providers are facing challenges in maintaining their customer. As a customer plays a vital role in business growth, a company must retain their customer. Thus, the purpose of this research is to examine the effect of service quality, satisfaction and loyalty towards customer retention a telecommunication industry in Malaysia. Data has been collected using a survey questionnaire and analyzed using SPSS and Smart-PLS. Six of the hypotheses were supported. Customer satisfaction has been found to have a significant relationship with customer loyalty. Service quality, which was measured using the network, customer service, and pricing structure, has been found to have a significant relationship with customer satisfaction. Research implications and recommendations are further discussed.

Adebiyi, S. O., Shitta, H. A., & Olonade, O. P. (2016). Determinants of customer preference and satisfaction with Nigerian mobile telecommunication services. BVIMSR’s Journal of Management Research, 8(1), 1.
Adeleke, A., & Suraju, A. A. (2012). The determinants of customer loyalty in Nigeria’s GSM market. International Journal of Business and Social Science, 3(14).
Ali, J. F., Ali, I., Rehman, K., Yilmaz, A., Safwan, N., and Afzal, H. (2010). Determinants of consumer retention in the cellular industry of Pakistan. African Journal of Business Management, Vol. 4 No. 12, pp 2402-2408.
Arokiasamy, A. R. A., & Abdullah, A. G. (2013). Service quality and customer satisfaction in the cellular telecommunication service provider in Malaysia. Researchers World, 4(2), 1.
Aydin, S., & Özer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910-925.
Bernama. (2008). Handphone Users can now switch service providers without having to change the number.
http://www.bernama.com/bernama/v5/bm/newsindex.php?id=364791.
Chang, P. K., & Chong, H. L. (2011). Customer satisfaction and loyalty on service provided by Malaysian telecommunication companies. In Proceedings of the 2011 International Conference on Electrical Engineering and Informatics (pp. 1-6). IEEE.
Chuah, H. W., & Mohd F., H. (2011). Exploring service quality, customer satisfaction and customer loyalty in the Malaysian mobile telecommunication industry. In 2011 IEEE Colloquium on Humanities, Science and Engineering (pp. 733-738). IEEE.
Chuah, H. W., Marimuthu, M., & Ramayah, T. (2015). Wireless telecommunications industry in Malaysia: Trends, challenges, and opportunities. In consumption in Malaysia: Meeting of new changes. Universiti Sains Malaysia Publisher, Penang.
Cronbach, R. G. (1960), Essential of psychological testing, 2nd ed. Harper and Row Company, New York, NY.
Danish, R. Q., Ahmad, F., Ateeq, A., Ali, H. Y., & Humayon, A. A. (2015). Factors affecting customer retention in telecommunication sector of Pakistan. American Journal of Marketing Research, 1(2), 28-36.
Domb, M., Sujata, J., Sanjay, B., Arindam, R., & Jypti, S. (2016). An empirical study to measure customer experience for telecommunication operators in Indian telecommunication industry. GSTF Journal on Business Review (GBR), 4(2).
Hubert, A., Harmanm, and Wricke, M. (2001). Customer satisfaction as an antecedent of price acceptance: Results of empirical study. Journal of Product and Brand Management, vol. 10 (3), pp. 160-169.
Fornell, C. A. L. D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research [online] 18(1): 39 available from
.
Hair, J. F. J., Hult, G. T. M., Ringle, C., and Sarstedt, M. (2014). A primer on partial least squares structural equation modelling (PLS-SEM), [online] vol. 46. Available from
.
Hair, J. F., Sarstedt, M., Ringle, C. M., and Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modelling in marketing research. Journal of the Academy of Marketing Science 40(3): 414-433.
Haque, A., Ahmed, I., & Rahman, S. (2007). Exploring critical factors for choice of mobile service providers and its effectiveness on Malaysian consumers. Journal of International Business and Economics, 2(2), 84-96.
Henseler, J., Ringle, C. M., and Sarstedt, M. (2014). “A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science. 43(1), 115–135.
Keaveney, S. M. (1995). Customer switching behavior in service industries: An exploratory study. Journal of marketing, 59(2), 71-82.
Khaligh, A. A., Miremadi, A., & Aminilari, M. (2012). The impact of eCRM on loyalty and retention of customers in Iranian telecommunication sector. International Journal of Business and Management, 7(2), 150.
Khan, I. (2012). Impact of customer satisfaction and retention on customer loyalty. International Journal of Scientific & Technology Research, 1(2), 106-110.
Kim, M. K., Park, M. C., & Jeong, D. H. (2004). The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services. Telecommunications policy, 28(2), 145-159.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.
Lee, J., Lee, J., & Feick, L. (2001). The impact of switching costs on the customer satisfaction-loyalty link: mobile phone service in France. Journal of services marketing, 15(1), 35-48.
Lim, H., Widdows, R., & Park, J. (2006). M-loyalty: winning strategies for mobile carriers. Journal of consumer Marketing, 23(4), 208-218.
Loke, S. P., Taiwo, A. A., Salim, H. M., Downe, A. G., & Petronas, U. T. (2011). Service quality and customer satisfaction in a telecommunication service provider. In International conference on financial management and economics (Vol. 11, No. 2, pp. 23-29).
Malaysian Communications and Multimedia Commission (MCMC). (2008). http://skmm.gov.my/consumer/pdf/YB_MINISTER_MNP_pr.pdf.
Malaysian Communications and Multimedia Commission (SKMM). (2018). Connectivity key to digital transformation industry performance report 2018.
Mohamad, N. (2004). Productivity growth in the Malaysian mobile telecommunications industry. International Journal of Economics, Management and Accounting, 12(2).
Ndubisi, N. O. (2005). Customer loyalty and antecedents: a relational marketing approach. In Allied Academies international conference. Academy of marketing studies. Proceedings (Vol. 10, No. 2, p. 49). Jordan Whitney Enterprises, Inc.
Nunnally, J. C. (1978). Psychometric theory (2nd ed). New York, Oliver: McGraw-Hill.
Ocloo, C. E., & Tsetse, E. K. (2013). Customer retention in the Ghanaian mobile telecommunication industry. European journal of business and social sciences, 2(7), 136-160.
Oladapo, K., Omotosho, O., & Adeduro, O. (2018). Predictive analytics for increased loyalty and customer retention in telecommunication industry. Int J Comput Appl, 975, 8887.
Otaigbe, E. E. (2018). Exploring satisfaction and retention strategies for generation y customers. (10811453 D.B.A.), Walden University, Ann Arbor. Retrieved from https://vpn.utm.my/docview/2038445392?accountid=41678 ProQuest
Dissertations & Theses Global database.
Pan, Y., Sheng, S., & Xie, F. T. (2011). Antecedent of customer loyalty: An empirical synthesis and reexamination, Journal of retailing and customer services, doi:10.1016/j.jretcons.
Preikschas, M. W., Cabanelas, P., Rudiger, K., & Lampon, J. F. (2017). Value cocreation, dynamic capabilities and customer retention in industrial markets. Journal of Business & Industrial Marketing, 32, 409-420. doi:10.1108/JBIM-102014-0215.
Ringle, C. M., Wende, S., and Becker, J.-M. (2015). "SmartPLS 3." Boenningstedt: SmartPLS GmbH, http://www.smartpls.com.
Ronald, W. (2016). Customer retention is highly saturated in telco market. (Doctorate of Business Administration), Northcentral University, Prescott Valley, Arizona.
Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal, 22(3), 330-343.
Shafei, I., & Tabaa, H. (2016). Factors affecting customer loyalty for mobile telecommunication industry. EuroMed Journal of Business, 11(3), 347-361.
Silva, K., & Yapa, S. (2013). Customer retention: with special reference to telecommunication industry in Sri Lanka.
Torsten, J. G., Rams, W., & Schindler, A. (2001). Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunication market.
Wirtz, J. (2003). Halo in Customer satisfaction measures: The role of purpose of rating, number of attributes and customer involvement. International Journal of Service Industry Management, 14(1), 96-119.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioural consequences of service quality. Journal of marketing, 60(2), 31-46.

In-Text Citation: (Chee, & Husin, 2020)
To Cite this Article: Chee, V. S., & Husin, M. M. (2020). The Effect of Service Quality, Satisfaction and Loyalty toward Customer Retention in the Telecommunication Industry. International Journal of Academic Research in Business and Social Sciences. 10(9), 55-71.